COVER STORY

Innovating Monodzukuri Processes

Nikon’s Solutions

Further automation and mass-customization are proceeding at manufacturing sites. Nikon widens the industrial possibilities by innovating Monodzukuri (manufacturing) processes to higher level and more diverse within the Digital Manufacturing field.

Opto-Electronics Technologies

Precision Technologies

Core CompetenceSocial Issues and Needs

INTRODUCTION BUSINESS STRATEGY SPECIAL FEATURE BUSINESS PERFORMANCE

CORPORATE GOVERNANCE

SUSTAINABILITY FINANCIAL AND CORPORATE DATA

In the FutureDigital Manufacturing

3D Printers

Integrated Optical Processing

Machining Solutions

Future Process-Based Manufacturing

Systems

3D Measurement Systems

Laser Processing Systems

Eco-Friendly FactoriesBuilding efficient production systems with fewer resources and less energy

High Level of Manufacturing Technologies

Realizing higher quality and precision manufacturing

Smart FactoriesPromoting further automation and efficiency at factories

1NIKON REPORT 2019

COVER STORY

Making a Better Society through Imaging and Sensing TechnologiesThrough Vision Systems / Robotics, Nikon brings the features of eyes to society, from factories to public spaces and our homes, leading to a more exciting future with safety and comfort.

Nikon’s Solutions

Opto-Electronics Technologies

Precision Technologies

Core CompetenceSocial Issues and Needs

2 INTRODUCTION BUSINESS STRATEGY SPECIAL FEATURE BUSINESS PERFORMANCE

CORPORATE GOVERNANCE

SUSTAINABILITY FINANCIAL AND CORPORATE DATA

In the Future

Coexistence of Humans and Robots

Realizing sophisticated and safe manufacturing sites

Cities with Safety and Security

Building smart city and better transportation systems

Expansion of Imaging Experiences

Providing the joy of watching sports and exercising to people around the world

Lidar

Robot Modules

Smart Cameras Robot Vision

High-Performance

Robots

Sports Imaging Business

Vision Systems / Robotics

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COVER STORY

Contributing to People’s Health and QOLTo realize people’s desire to stay healthy, Nikon supports the advancement of life sciences and medicine in the Healthcare field with the vision of improving people’s QOL (Quality of Life).

Nikon’s Solutions

Opto-Electronics Technologies

Precision Technologies

Core CompetenceSocial Issues and Needs

4 INTRODUCTION FINANCIAL AND CORPORATE DATA

SUSTAINABILITYCORPORATE GOVERNANCE

BUSINESS PERFORMANCE

SPECIAL FEATUREBUSINESS STRATEGY

In the Future

Realization of Drug Discovery and Regenerative Medicines for Intractable Diseases

Contribution to Early Detection of Diseases

Provision of New Diagnosis Technologies

Healthcare

Cell Sorting

Ophthalmological AI Diagnosis

Cell Culture Operation and Assessment Applications

Contract Cell Manufacturing

Drug Discovery Support

5NIKON REPORT 2019

Nikon will endeavor to advance the new Medium-Term Management Plan, establish foundations for growth, and become a “Leading Company in Precision and Optics” in order to achieve sustainable improvements in enterprise value over the medium to long term.

Nikon Report 2019 features clear and concise explanations from us and business unit representatives on the new Medium-Term Management Plan and other medium- to long-term growth strategies. This report also compiles important information pertaining to the value creation and foundation-building initiatives aimed at realizing sustainable growth. We kindly ask all of our stakeholders, including shareholders and investors, to read this report.

Toshikazu UmatateRepresentative DirectorPresident & CEO

Masashi OkaRepresentative DirectorSenior Executive Vice President & CFO

Management Message

6 INTRODUCTION FINANCIAL AND CORPORATE DATA

SUSTAINABILITYCORPORATE GOVERNANCE

BUSINESS PERFORMANCE

SPECIAL FEATUREBUSINESS STRATEGY

CONTENTS

8 Our Philosophy / Our Vision / Our Qualities of Mind 10 Nikon’s Value Creation Process (Sustainability Strategy)

12 Message from the President & CEO 18 Overview of the Restructuring 20 New Medium-Term Management Plan

—Establishing a Foundation for Sustainable Growth 24 Message from the CFO 26 Performance Highlights

32 Evolutions of Products and Services Based on Opto-Electronics and Precision Technologies

34 Goal of Becoming a Leading Company in Precision and Optics

40 Nikon’s Business Structure 42 Overview of Business Units 42 Imaging Business Unit 44 FPD Lithography Business Unit 46 Semiconductor Lithography Business Unit 48 Healthcare Business Unit

50 Directors and Officers 52 Corporate Governance 57 Message from the Chairman of the Board 58 Interviews with External Directors

62 Management Resources That Support Nikon’s Value Creation

68 Management’s Discussion and Analysis 72 Financial Information 131 Organization of the Nikon Group 132 Corporate Data / Investor Information 133 Independent Practitioner’s Assurance /

ESG External Ratings

INTRODUCTION

SPECIAL FEATURE

CORPORATE GOVERNANCE

BUSINESS STRATEGY

BUSINESS PERFORMANCE

SUSTAINABILITY

FINANCIAL AND CORPORATE DATA

Statements contained in this report regarding the plans, projections, and strategies of Nikon Corporation and its subsidiaries and affiliates that comprise the Nikon Group that are not historical fact constitute forward-looking statements about future financial results. As such, they are based on data that is obtainable at the time of announcement in compliance with the Nikon Group’s management policies and certain premises that are deemed reasonable by the Nikon Group. Hence, actual results may differ, in some cases significantly, from these forward-looking statements due to changes in various factors, including—but not limited to—economic conditions in principal markets, product and service demand trends, customer capital expenditure trends, and currency exchange rate fluctuations. This report covers the activities of domestic and overseas Nikon Group companies, centered on Nikon Corporation. In principle, the terms “the Company,” “Nikon Corporation,” and “Nikon” refer to Nikon Corporation, while “the Group” and “the Nikon Group” refer to Nikon Corporation and its Group companies. As for the numerical values relating to the financial content of this report, figures displayed in hundred millions of yen are truncated, and figures displayed in millions of yen are rounded to the nearest unit.

7NIKON REPORT 2019